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ISAN rejects CBN revocation of banks operating licenses
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Sat
August 6, 2011
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The Independent Shareholders Association of Nigeria (ISAN)
Friday night described as obnoxious and illegal the revocation
of three operating commercial banks by the Central Bank of
Nigeria (CBN).
ISAN urged President Goodluck Jonathan to declare an emergency
in the nation's banking industry to avert what they termed
"global concerns on Nigeria's economic and financial status."
The association said in statement that the revocation of the
operating licenses of three commercial banks, namely Afribank
Plc, BankPHB Plc and Spring Bank Plc, remained a calculated
subversion of the nation's economy and the great people of
Nigeria.
"Importantly and as concerned shareholders, ISAN strongly feels
that the revocation of banking licenses remains an open gridlock
that in the medium term erodes the transformation agenda of the
administration of President Goodluck Jonathan.
"That the Central Bank of Nigeria Re: Resolution of
Recapitalization through Bridge Banks remains an attestation of
failure or inept leadership by the current management of the
apex bank toward finding a permanent answer to the nation's
induced banking problems," ISAN said.
According to ISAN, the revocation of the operating licenses of
the banks will deepen the crisis of confidence in the nation's
domestic financial sector, particularly the banking and the
capital market.
The statement signed by ISAN National Coordinator, Sunny Nwosu,
also stated that "CBN's revocation approach to the nation's
self-induced banking distress would further improvise the
citizens and Nigerians ability to create wealth through long
term savings window of the capital market."
They argued that the revocation of the operating licenses of
three commercial banks was an illegal policy that had clearly
showcased Nigeria as an unfriendly polity for sustainable
business engaged in a class war championed by few individuals in
the corridors of power at the CBN.
The Nwosu-led group submitted that the hurried revocation of the
licenses remained a calculated plot to forcefully compel the new
Minister of Finance to be part of an alleged agenda in the
banking industry.
Nwosu said that the revocation of the operating licenses was an
affront on the nation's Judiciary, as there were substantive
cases over the banks in question in competent law courts.
The association also said that it had been vindicated in its
earlier posture that the Assets Management Company of Nigeria
(AMCON) was floated to re-nationalise commercial and quoted
banks.
"By this action, the CBN has actualised the subsisting threat to
revoke the operating licenses of banks whose shareholders
challenged in law courts the apex bank's recapitalisation
method," ISAN said.
NAN
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